Herbalife will repurchase shares from billionaire investor Carl Icahn at $48.05 each for a combined worth of $600 million, according to Bloomberg. The sale means Icahn Enterprises LP will trim its holdings to about 6% on or before January 7. The billionaire will also relinquish his five seats on the board. 

  • After the transaction, Icahn will cease to be Herbalife’s biggest shareholder as it winds down his holdings in the company after a tumultuous eight-year investment.
  • Icahn bought Herbalife’s stock in 2013 after fellow activist investor Bill Ackman took a short position in the company and labeled it a pyramid scheme.
  • Icahn defended Herbalife’s marketing model and threatened to take the company private after clashing with Ackman severally.
  • In the third quarter of 2020, Icahn sold $679.3 million of Herbalife’s share, leaving him with a 16% stake or $946 million worth in the company.
  • Icahn hinted that “the time for activism has passed as the company has grown” and does not invest billions of dollars in entities where his role as an activist is no longer needed.

Herbalife stock is currently gaining. HLF: NYSE is up 0.59%